Support Test

AAA

DEFINITION of 'Support Test'

One of five tests that must be passed in order to claim someone as a dependent. The Support Test mandates that the taxpayer must have provided more than half of the prospective dependent's living expenses during the year. Living expenses include meals, lodging, clothing and medical care and anything else that a parent would normally provide for a child or other dependent.

INVESTOPEDIA EXPLAINS 'Support Test'

The Support Test is closely related to the Relationship and Residence Tests, but the prospective dependent does not have to live with the taxpayer in order to pass this test. The Support Test is perhaps the most direct measure of whether a taxpayer should be able to claim someone as a dependent. After all, if the person is not financially dependent upon the taxpayer, then why should the taxpayer be able to claim his or her as a dependent?

RELATED TERMS
  1. Member Of Household Test

    A test that can be administered to a prospective dependent in ...
  2. Relationship Test

    One of several tests that a person must pass in order to be claimed ...
  3. Dependent

    An individual whom a taxpayer can claim for credits and/or exemptions. ...
  4. Head Of Household

    A status held by the person in a household who is running the ...
  5. Average Cost Basis Method

    A system of calculating the cost basis on mutual fund positions ...
  6. Crummey Trust

    An estate planning technique that can be employed to take advantage ...
RELATED FAQS
  1. Which states are the most expensive for high-income earners?

    The most expensive states for high-income earners are California, Hawaii and New York. The tax rates assessed by these states ... Read Full Answer >>
  2. What are the risks involved in a banker's acceptance?

    College savings accounts are excellent ways to encourage saving for future college costs. Contact your investment professional ... Read Full Answer >>
  3. Should I purchase a master limited partnership (MLP) in my retirement account?

    Most investors should not purchase units in a master limited partnership, or MLP, in their retirement accounts. MLPs offer ... Read Full Answer >>
  4. What are the tax implications of owning a master limited partnership (MLP)?

    There are significant tax benefits to owning units in a master limited partnership (MLP), although most investors do not ... Read Full Answer >>
  5. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ... Read Full Answer >>
  6. What documents I need to transfer an IRA/SEP/SIMPLE to a Traditional IRA?

    Most firms require that you complete their account transfer request form, which they use to request the transfer of assets ... Read Full Answer >>
Related Articles
  1. Savings

    Don't Forget The Kids: Save For Their Education And Retirement

    Retirement and education financing are the two most important planning items for taxpayers.
  2. Budgeting

    Why Some Kids Never Leave The Nest

    Giving your children a free ride can be costly for both of you.
  3. Savings

    5 Ways To Fund A College Education

    You can go to college without going broke, but it may take an unconventional approach.
  4. Taxes

    Taxing Times For Divorced Parents

    Find out how to deal with the tax issues that arise for divorced parents with dependent children.
  5. Taxes

    Top Tax Issues For High-Net-Worth Individuals

    Wealth brings benefits, but from a tax perspective it creates special challenges. Here are some tax issues to pay attention to.
  6. Taxes

    Top 4 Ways to Invest Tax Free

    When you're ready to invest, start by looking at these 4 tax-advantaged ways to build your portfolio and your future.
  7. Taxes

    Are Taxes the Solution for Income Inequality?

    Income inequality continues to increase. Why? And are taxes the solution?
  8. Taxes

    Tips on Charitable Contributions: Limits and Taxes

    An overview of the limits and tax deductions of charitable donations.
  9. Retirement

    Converting A Traditional IRA To A Roth

    When is it a good idea to convert traditional IRA funds into Roth IRA funds? And when does it not make sense?
  10. Savings

    5 Secrets You Didn't Know About A 529 Plan

    Start saving for college as soon as possible after your kids are born – and keep these details in mind.

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center